Summary

• I own AMH for its 60,000 single-family homes in prime locations, promising long-term capital appreciation and inflation-adjusted revenue.
• Barchart's powerful screening tools identified AMH due to its strong technical buy signals, consistent price appreciation, and Trend Seeker buy signal.
• AMH is a leading REIT with a disciplined property acquisition process and has received multiple accolades for its workplace and operational excellence.
• Analysts' consensus price target is $41.19, with strong buy ratings, despite expected short-term earnings decline but promising long-term growth.

Author's Note:  This is a stock I own as a long range holding for several reasons.  They own 60,000 single family homes in prime locations that will appreciate in value in the long term. As inflation hits rental prices they will be able to raise their market competitive monthly rental rates.  Long term capital appreciation and inflation adjusted revenue seem to be two great reasons to own this REIT.

The Chart of the Day belongs to the single-family homes REIT American Homes 4 Rent (AMH) . I found the stock by using Barchart's powerful screening functions to find stocks with the highest technical buy signals, highest Weighted Alpha, superior current momentum and having a Trend Seeker buy signal then used the Flipchart feature to review the charts for consistent price appreciation. Since the Trend Seeker signaled a buy on 8/6 the stock gained 4.47%.

(Click on image to enlarge)

AMH Price vs Daily Moving Averages

AMH (NYSE: AMH) is a leading large-scale integrated owner, operator and developer of single-family rental homes. We're an internally managed Maryland real estate investment trust (REIT) focused on acquiring, developing, renovating, leasing and managing homes as rental properties. Our goal is to simplify the experience of leasing a home and deliver peace of mind to households across the country. In recent years, we've been named one of Fortune's 2023 Best Workplaces in Real Estate, a 2024 Great Place to Work, a 2023 Most Loved Workplace, a 2023 Top U.S. Homebuilder by Builder100, and one of America's Most Responsible Companies 2024 and Most Trustworthy Companies in America 2024 by Newsweek and Statista Inc. As of March 31, 2024, we owned nearly 60,000 single-family properties in the Southeast, Midwest, Southwest and Mountain West regions of the United States. 

Barchart's Opinion Trading systems are listed below. Please note that the Barchart Opinion indicators are updated live during the session every 20 minutes and can therefore change during the day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report.

Barchart Technical Indicators:

• 100% technical buy signals
• 14.98+ Weighted Alpha
• .74 - 60 month Beta
• 10.35% gain in the last year
• Trend Seeker buy signal
• Above its 20, 50 and 100 day moving averages
• 7 new highs and up 10.04% in the last month
• Relative Strength Index 73.05%
• Technical support level at $39.31
• Recently traded at $39.77 with 50 day moving average of $37.34

Fundamental Factors:

• Market Cap $14.57 billion
• Revenue expected to grow 5.70% this year and another 5.40% next year
• Earnings estimated to decrease 16.80% this year, an additional 20.20% next year but continue to increase at a compounded annual rate of 6.70% for the next 5 years

Analysts and Investor Sentiment -- I don't buy stocks because everyone else is buying but I do realize that if major firms and investors are dumping a stock it's hard to make money swimming against the tide:

• Wall Street analyst gave 12 strong buy, 2 buy and 7 hold opinions on the stock
• Analysts' price targets are between $38 and $44 with a consensus of $41.19
• Value Line has price targets between $33 and $51 with a mid-point of $42 and comments:" At the recent quotation, capital appreciation potential over the 3- to 5-year horizon looks worthwhile. "
• CFRAs MarketScope rates the stock a hold with a price target of $39 and comments: "Management has a disciplined property acquisition process that focuses on single-family homes with these characteristics: (1) construction after the year 2000; (2) three or more bedrooms; (3) two or more bathrooms; (4) a range of $200,000 estimated minimum valuation to $450,000 maximum bid price; and (5) estimated renovation costs not in excess of 25% of estimated value."
• MorningStar rates the stock an average 3 star rating with Fair Value at $39 or properly valued
• 8,110 investors monitor the stock on Seeking Alpha

Additional disclosure: The Barchart Chart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance and reevaluate your stop losses at least on a weekly basis.

On the date of publication, Jim Van Meerten had a position in: AMH . All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.

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